insurance

HDFC Life Insurance

HDFCLIFE · Nifty 50

₹581.8

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

ValuationPE 62.5 (22%ile of 5Y range 62-97). Trading below historical range.

Sector Positioninsurance sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).

Fundamental Score75/100 (STRONG). 3 positive flags, 1 concerns.

Historical Context144 similar technical setups. Average outcome: -7.5% decline. 0% positive.

Revenue TrendRevenue declining at -17.7% YoY. Revenue declining — -17.7% YoY

Bank HealthROA 0.50% · PB 6.8 · Asset growth 11.8%.

Fundamental

75/100

STRONG

Trust

90/100

Verification

Coverage

89/100

HIGH

Quick Take

HDFC Life Insurance scores 75/100 on fundamentals (strong). HDFC Life Insurance: PE below historical average. BROAD EXPANSION regime.

Fundamental Score: 75/100 · STRONG · 1 signals detected

DuPont Analysis

ROE 10.9% broken into three drivers. Each shows how efficiently the company generates returns.

ROE10.9%=

1.9%Net Margin

0.3xTurnover

22.0xLeverage

ROE of 10.95% is moderate leverage-driven and stable. Net margin of 1.9% × asset turnover of 0.26x × leverage of 22.0x. High leverage amplifies returns but increases risk. Low asset turnover is normal for banks.

What This Means

Net margin of 1.9% means the company keeps ₹1.9 as profit for every ₹100 of revenue. This is a low-margin business. Asset turnover of 0.26x means the company generates ₹0.26 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 22.0x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

100.0%

Operating

Net

1.9%

improving

Financial Health

Peer Comparison

HDFC Life Insurance is compared against 6 peers in the insurance sector.

GODIGIT ICICIGI ICICIPRULI MFSL SBILIFE STARHEALTH

Bank Metrics

Return on Assets

0.50%

Benchmark: >1%

Efficiency Ratio

98.1%

Lower is better

Asset Growth

+11.8%

Year over year

PB Ratio

6.8x

Price to book

ROA of 0.5% is weak (benchmark: >1% for banks). P/B of 6.75x — trading above book. Premium valuation — market pricing in high growth expectations.

Key Watchpoints

🟢

Breaks above ₹611 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹553 (-5%)

Further downside risk

🟡

PE reverts to 5Y median of 64.2

Valuation normalization

🟢

Insurance sector entering leadership

Sector rotation signal

Detected Patterns

✅ Strong Loan Book Growth: Assets growing 11.8% — loan book expansion

Risk Flags

⚠️ 1 Warning✅ 3 Positive4 total flags

⚠️Audit risk elevated: 8/10

Governance

Potential accounting concerns. Cross-check with earnings quality flags.

✅High promoter holding: 56%

Governance

Strong insider alignment. Promoters have significant skin in the game.

✅Strong analyst consensus: strong_buy (35 analysts)

Valuation

Mean recommendation: 1.3/5 (1=Strong Buy, 5=Strong Sell). Institutional confidence is high.

✅Price/Sales: 1.3x — reasonable revenue multiple

Valuation

Company not overvalued on revenue basis.

➡️ 4 flags — 3 positive, 1 warning. Mixed profile.

Data Quality

90/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)

⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio

62.5HIGH

P/B Ratio

6.7HIGH

ROE

11.3%HIGH

Market Cap

₹11981182.7L CrHIGH

From 52W High

71% of high

Promoter Holding

56.0%MODERATE

Institutional

28.6%

Sector Peers

← All Stocks Market GPS Daily Brief insurance Sector